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India’s ‘affluent class’ seen growing to 100 million in four years

The ‘affluent class’, with annual income above $10,000, is expected to splurge on leisure, jewelry and other premium goods and services, Goldman Sachs says

India’s ‘affluent class’ seen growing to 100 million in four years
[Source photo: Chetan Jha/Press Insider]

India’s “affluent class”, or those with an annual income above $10,000 (about ₹825,000), is projected to grow from the current 60 million to 100 million by 2027, Goldman Sachs said in a report.

Currently, about 4% of India’s working age population has a per capita income above $10,000, the report, titled The Rise of ‘Affluent India’, said.

The asset manager, which tracked tax filings, bank deposits, credit cards and broadband connections data, sees a surge in “affluent class” spending on leisure, jewelry, restaurants, healthcare, and premium brands across categories.

There are about 40 million consumers who travel by air in India every year, around 30 million monthly transacting users for online food aggregators, 30 million broadband connections and about 26 million international travelers from India, the report said.

The past three years have seen a significant boost in the value of financial and physical assets in India, the report said, highlighting three key asset classes that have seen a large increase in value from fiscal 2019: equities, gold, and real estate.

The increase has been the largest for equities and gold, while property prices have seen a higher rate of appreciation in the past 3-4 years, the report said.

Companies that cater to the premium consumption market have seen faster growth in the past three years when compared with those targeting broad-based consumption, Goldman Sachs said in the report.

Indian households hold about 25,000 tons of gold representing up to 11% of the world’s physical gold stock, the report said, citing the World Gold Council.

The price of gold has increased from an average of ₹39,900 per 10 gm in January 2020 to an average of ₹62,200 per 10gm in December 2023, a 65% increase.

The value of the total stock of household gold in India has increased from $1.1 trillion to $1.8 trillion over 2019 to 2023. This sharp increase would be a key component of the rising wealth effect on ‘Affluent India’, the report said.

While a significant amount of gold is held as jewellery in households, it is still seen as a store of value and this contributes to the wealth effect, it added.

India’s market capitalization has surged by over 80% in the past three years, bolstered by increased retail participation, while gold prices have risen by 65% from 2020, boosting the total value of Indian holdings in equities and gold from $1.8 trillion to $2.7 trillion, the report said.

Property prices, meanwhile, have seen a 30% increase over FY19-23, a significant uptick when compared with the 13% increase between FY15-19, the report added.


John Melvin Konath is the Managing Editor at Press Insider. John has close to two decades of experience in managing and editing a range of domestic and global publications, notably from Southeast Asia, the Middle East and North America. More

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